It is necessary to apologize upfront for the fact that obtaining a glimpse into my life requires a certain level of variation in coverages, deductibles, and terms from one company to another, as this is not an exact science. It seemed logical to pit Tesla, as the owner of a Tesla in California, against another online insurance company, and today Tesla has launched its new insurance offering.
Image credit: Tesla.
Our Current Insurance
I will assess the pricing for insurance on the Tesla Model 3 at Tesla Insurance by comparing it with the cost of relocating the Tesla Model 3. Since this is a drawback that Tesla has chosen, it necessitates having a separate policy for each vehicle. Therefore, Tesla Insurance is exclusively available for Tesla vehicles, enabling us to qualify for a multi-policy discount. We can include my wife’s Mercedes B-Class Electric Drive on our policy with esurance.
We currently pay $89.36 per month for our 2018 Tesla Model 3 coverage, which is split into $322.18 for general liability coverage and $89.36 every six months for vehicle coverage with esurance.
Going With The Gecko
Geico mandated that I provide my spouse’s details also, presumably to factor in the lesser mileage she will inevitably accumulate on the vehicle. Transferring exclusively my coverage to Geico did not yield any financial benefits, either; however, luckily, the process was not excessively time-consuming. Geico is renowned for aiming to reduce your expenses by 15% or more within a quarter of an hour, hence I sought a quotation from Geico’s representatives for insurance devoid of any deductions.
I was forced to use different policy limits, so Geico has slightly different coverage for Bodily Injury (vs standard coverage of $250,000/$500,000) and I have the option to pay $819.78 for 6 months or $136.63 per month to translate it in my data stubbing.
Tesla Insurance
By visiting tesla.Com/insurance, you can easily acquire a Tesla Insurance policy by simply swapping the coverage limits with a few clicks, and it promptly generates a standard quote. If you choose to “Customize Coverage” and make adjustments to each coverage item, the quote can be tailored according to your individual needs. This process is similar to esurance and instantly displays an updated monthly premium as you scroll down.
In my situation, the premium at Tesla was $142.25 yesterday, but the company has evidently modified its pricing algorithm since then. The modification resulted in a new premium of $122.42/month for coverage that is comparable.
We are currently making some enhancements to Tesla Insurance and will return online soon.
— Tesla (@Tesla) August 28, 2019
The current rate at Tesla Insurance.
Financial Breakdown
In order for me to switch to Tesla in reality, Tesla Insurance must overcome the lack of an option to add a second vehicle. This is a business strategy that Tesla has chosen, but esurance gains an advantage over Tesla because of the multi-policy discount. The monthly rate I currently have with esurance is the lowest at $89.36, making it the most cost-effective option.
The 2018 Tesla Model 3 is currently covered under our esurance policy for $33.06 per month. Although it may seem nonsensical to intentionally pay more for the same coverage, there are other factors at play. I could potentially adjust the deductibles or lower the coverage to lower the monthly premium. However, I have no plans to switch to Tesla Insurance, as it would cost me $122.42 per month.
When comparing Geico’s standalone policy at $136.63 per month, it appears to be a fair apples-to-apples comparison to obtain more accurate data. In the case of Tesla’s insurance, it is slightly cheaper at $14.21 per month since it offers a slight discount.
Nuts & Bolts
Tesla offers an intangible advantage by providing fast repairs for customers who insure their Tesla vehicles. The company takes a different approach by ensuring that everything, including updates to the pricing algorithm, is done in-house. As a result, Tesla has become a new player in the insurance industry.
However, it is clear to me that Tesla Insurance is not cutting support to the financial case for at least over. The potential experience for ridesharing, insurance, repair, service, purchasing, and vehicle is soon to be seamless, diving into a nice little ecosystem for Tesla owners. Additionally, it is a bonus that the company will eliminate associated headaches by contracting with an outside company to streamline the rental process and reimbursements. Furthermore, it is a fact that loaner vehicles will come from the Tesla fleet, adding to the overall convenience.
Verify your individual or household cost estimations regarding insurance. As we’ve mentioned numerous times, only those within Tesla possess the overall outcome or typical savings or loss. Certain individuals, including myself, have not experienced significant savings by switching to Tesla Insurance. However, certain Tesla owners have apparently experienced substantial savings by switching to Tesla Insurance, as is the case with various aspects of the automotive industry, Your Mileage May Vary (YMMV).
Thank you Elon Musk! The insurance from Tesla is approximately 30% more affordable compared to my current coverage. It’s definitely worth confirming my insurance rate with Tesla after the recent update. I’m amazed!
Get a quote with #Tesla Insurance for competitive rates in as little as 1 min. Now available in California. https://t.co/C5Dsy1uOdp
— Vincent 🚀🟠 (@vincent13031925) August 30, 2019
And WOW! It’s straight $100 cheaper than it was pre-algorithm! And now over $60 less than @geico. Hello Tesla Insurance! //Cc @elonmusk.
— Elijah Nicolas (@eejay) August 30, 2019
Thank you, Elon Musk. The monthly cost is around $60, and it’s also about saving money. The coverage is a superior option compared to what I had before, and the insurance quotes today were much cheaper than before. I just obtained insurance from Tesla. Well,
— Mark Linsangan (@HeyMarkL) August 30, 2019
Today, I made the decision to halt my monthly payments of $184 to Warren Buffet’s enterprise, GEICO, and instead, I commenced paying $152 per month to Elon Musk’s corporation, Tesla, in exchange for a more extensive insurance policy.
Thanks @elonmusk $tsla
— Spencer (@sensarpensar) August 30, 2019
Https://twitter.Com/tesla_truth/status/1167254764297408512.
That accounts for my $2000 savings.
— Ryan👻 (@Ryanth3nerd) August 30, 2019
Https://twitter.Com/tesla_truth/status/1167278517609844736.
Unfortunately, the media business is still cut-throat and tough, with even the tiniest margins to challenge. So, we’ve decided to ditch ours and not put a paywall behind our content. We don’t want fewer people to read it! But, behind a paywall goes your best and most exclusive content. It’s always been tough to decide whether we should put a paywall behind it, and it always felt wrong. And here at CleanTechnica, we implemented a limited paywall for a while. Who likes paywalls? I don’t like paywalls, and I assume you don’t like paywalls either.
Thank you! Please contribute a small monthly amount through PayPal or Patreon if you appreciate our work and would like to support our team.
Subscribe to receive daily news updates from CleanTechnica via email. Alternatively, you can also follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era:
CleanTechnica employs affiliate links. Please refer to our policy here.